Question

Short-term planning covers short-term financial plan called budget.

• A. True
• B. False

Answer 1

The correct option is A True

Companies develop short-term financial plans to meet budget and investment goals within one fiscal year. These plans have a higher degree of certainty compared to long-term plans. Short-term plans often are amended as financial and investment goals change. Businesses and individuals alike use short-term plans to manage short-term cash deficits